PUBLIC RECORD OFFICE
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C.O. 882
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PUBLIC RECORD OFFICE, LONDON
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a maximum of 5 francs 50 centimes for other sugars. The surtax is the differ- ence between the rate of duty or taxation to which foreign sugars are subject, and that imposed on the home product."
Countries affected by the Convention are bound to either impose an import duty not less than the excess of the surtax over the above amounts or to prohibit the entry into them of sugar from the countries that have an excess surtax. Hong Kong is affected by the Convention. Being a free port it cannot impose import duties, and is bound to prohibit importation.
The Permanent Commission which gives effect to the Convention has ruled that the import duty on raw sugar at the Philippines is equivalent to an excess over the recognised surtax of 1 franc 31 centimes per 100 kilogrammes.
Unless this excess surtax is removed it may be necessary for Hong Kong to issue
a prohibition order against the importation of raw sugar from the Philippines.
This would injuriously affect Hong Kong, and cannot be of any advantage to the Philippines.
15221
No. 47.
COLONIAL OFFICE to FOREIGN OFFICE. SIR,
In reply to your letter of the 29th of April,* I am directed by Mr. Secretary
Downing Street, May 18, 1905. Lyttelton to state that he fully appreciates the Marquess of Lansdowne's view that, having regard to the decision taken by the Permanent Commission in the case of Denmark, the reduction of the duty in the Philippine Islands on raw sugar only might not wholly meet the requirements of Article III. of the Brussels Convention if a refining industry existed in the Philippines, but I am to observe that this would not be the case if, as stated in the Memorandum of the Board of Trade of December, 1904, there are no refineries in operation in the Islands, all their refined sugar being imported from abroad.
I am at the same time to transmit to you, for Lord Lansdowne's information, in connection with the above question, and with reference to your letter of the 8th of February,† the accompanying copy of a despatcht from the Governor of Hong Kong, with enclosures, from which it will be seen that the Government of the Philippines, at the suggestion of the Governor of Hong Kong through the United States Consul, are considering the reduction of the duties on raw sugar.
I am to add that, in view of the decisions arrived at by the Permanent Com- mission at their last session, Mr. Lyttelton hopes that, whether the above duties should be reduced or not, it is not very probable now that the Permanent Commission will regard the Philippine sugar duties as giving rise to a bounty on raw sugar, but he would suggest that in any future instructions to the British Delegate his atten- tion should be specially drawn to the importance of this question, as affecting the refining industry of Hong Kong.
I am, &c.,
15221
SIR,
No. 48.
C. P. LUCAS.
MR. LYTTELTON to GOVERNOR SIR M. NATHAN. (Confidential.).
WITH reference to your
To Foreign Office, March 31, 1905. Foreign Office, April 29, 1905.
despatch, No. 98 of the 7th of April, and to my
Downing Street, May 31, 1905. circular despatch of the 24th of May,§ I have the honour to transmit to you, for your further To Foreign Office, May 18, 1905.
information, the accompanying copies of corre spondence with the Foreign Office, on the subject of the Philippine Islands sugar duties.
I have, &c.,
ALFRED LYTTELTON.
23051
SIR,
(No. 141.)
41
No. 49.
GOVERNOR SI M. NATHAN to MR. LYTTELTON.
(Received July 3, 1905.)
Government House, Hong Kong, May 31, 1905. IN continuation of my despatch, No. 98 of the 7th April, 1905,* on the subject of the penalization of raw sugar produced in the Philippine Islands, I have the honour to inform you that in reply to further enquiries I recently made of the Consul-General of the United States of America at this port, he has informed me that he has now been assured by the Civil Governor of the Philippine Islands that the Government of those Islands are powerless in the matter of reducing the rate of import duty on raw sugar and glucose, which by an Act of Congress passed on the 3rd March last to revise and amend the Tariff Laws of the Philippine Islands was fixed at one dollar and sixty-two cents per one hundred kilos. gross weight. I cannot ascertain the exact amount of import duty imposed on raw sugar previous to the passing of the Act of March 3rd, but the new tariff appears slightly to enhance the nominal advantage derived from the surtax calculated in accordance with Article IV. of the Brussels Convention.
2. General Bragg also informs me that Congress does not meet again till December next, that is not till after the date when the penalization of sugar from the Philippine Islands is to be further considered by the Permanent Commission, and that it is unlikely that when it does meet it will amend the protective tariff.
3. In these circumstances it would seem that the penalization of Philippine raw sugar can only be avoided by representation of the fact that as the Islands do not import such sugar the theoretical surtax does not result in any practical bounty.
I have, &c.,
M. NATHAN,
23051
SIR,
No. 50.
COLONIAL OFFICE to FOREIGN OFFICE.
[Answered by Nos. 51 and 57.]
WITH reference to the Colonial Office, March 31, 1905. Foreign Office, April 29, 1905. Colonial Office, May 18, 1905.
Governor.
correspondence noted in the margin,† I am directed
Downing Street, July 15, 1905.
by Mr. Secretary Lyttelton to forward to you, to be laid before the Marquess of Lansdowne, the enclosed copy of a despatch from the Governor of Hong Kong with regard to the
duties on sugar imported into the Philippine Islands.
2. It appears from the Governor's despatch that the import duties on sugar have recently been altered, and that the new duty on raw sugar is a little over frs. 8.43 per 100 kilos., while Mr. Lyttelton learns privately that the duty on refined sugar is a little over frs. 15.62 per 100 kilos., these duties being slightly in excess of those formerly imposed. As regards the export duty on sugar, in the absence of any information to the contrary, Mr. Lyttelton assumes that it remains at the previous figure of frs. 26 per 100 kilos, for all classes of sugar.
3. In view of what Sir M. Nathan reports having heard from the United States Consul-General in Hong Kong, I am to request you to invite Lord Lansdowne's attention to the concluding paragraph of the letter from this Department of the 18th of May last,§ and to enquire whether his Lordship is aware if the Board of Trade have any information as to the local price of raw sugar, the re-establishment of refineries in the Philippine Islands, or as to any other circumstances affecting the question of whether a bounty exists or not, more recent than that given in their memorandum of December, 1904,|| upon which presumably was founded the memo- randum which was circulated by the British delegates to the members of the Brussels Commission at their last session.
• No. 45.
† No. 39. ‡ No. 46.
j Not printed.
• No. 46.
| Nos. 43, 15 and 47.
No. 36.
↑ Nos. 43, 45 and 47.
# No. 49.
§ No. 47.
| No. 36.
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